Polygon 2.0 includes a vast amount of different roles that we need to fill across different chains across the ecosystem. Instead of having one set of validators, we now have sequencers, provers, data availability committees, governance, etc. The 1% will be allocated flexibly where additional rewards are required. The main purpose I see for example is bootstrapping, to get new services in the ecosystem off the ground. While we would subsidise sequencing at first for example, our goal is to find sufficient revenue streams to be able to sustain high security so that this subsidy is not required later on and it can be used to bootstrap other parts of the ecosystem. One aspect of it can be transaction fees, as you mentioned but there are also other revenue streams we haven’t explored yet, for example MEV
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I understand the need for using POL issuance for subsidy given the early stage of the L2s, which probably have lower profit margins. I would like to see if you can also provide where the 1% comes from, based on what assumptions and analysis? Or is it just an arbitrary number?
As you mentioned, the 1% will be allocated flexibly, is governance going to determine the amount of allocation for each stakeholder and where will that 1% be stored at? Is it also in the treasury wallet as well?
Looks like is so great!
Have a integrated for build new era
Is there any update on the migration timeline?